Assume that an increase of 300 in exports leads to an increase of ...

[rlane42]

Assume that an increase of 300 in exports leads to an increase of 750 in equilibrium income. If the marginal propensity to import equals 1/10, the marginal propensity to save must be _____.
 a. 0.60
  b. 0.50
  c. 0.40
  d. 0.30
  e. 0.25

Question 2

The law of demand illustrates a(n) ____ relationship between price and ____.
 a. direct; quantity demanded
  b. inverse; quantity demanded
  c. inverse; demand
 d. direct; demand

[Joc]

Answer to Question 1

d

Answer to Question 2

b

[rlane42]

Thanks for the timely response, appreciate it

[Dnite]

Wow, this really help